G-20 discussions set to focus on impact of yuan devaluation

The recent devaluation of major currencies followed by currency depreciations in a large number of Asian emerging markets raises the risk of competitive devaluations. Competitive currency devaluations, at a time when global demand is sluggish, is a major threat to stability in the global economy, the Ministry release said.

The two-day meeting will take stock of the global economic situation and the yuan devaluation is expected to dominate the agenda.

However, according to several economists, the Chinese devaluation of the yuan is not of serious consequence to the Indian economy, even in the medium term.